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DONT BE FOOLED BY THE THREAT OF SAFETY FORCE LAYOFFS WHILE THE ADMINISTRATION INCREASES IN SIZE AND SALARIES. PLEASE CLICK ON THE FOLLOWING LINK FOR INFORMATION ON THE LAND AQUISITION TAX SCHEME, ALSO KNOWN AS ISSUE 65 - SAFETY LEVY:

Sunday, July 13, 2008

Crunching The Numbers

According to loan applications submitted by the City of South Euclid to the Cuyahoga County Department of Development:

The estimated cost of the redevelopment of Cedar Center is approximately $69 million.

The Sun Messenger reported that Peter Rubin dba The Coral Company will contribute $40 million which includes $17 million to repay the city their purchase price. If that is correct, this would leave $23 million that Peter Rubin will contribute to the redevelopment cost. Now there is a matter of at least $46 million that is remaining to reach the estimated cost of $69 million for the redevelopment. $46 million is a VERY conservative estimate, because the same county documents actually show the city’s calculations indicating “debt financing” to be $56,083,729.

The City of South Euclid has stated that a minimum of $13 million will be funded through “TIF” financing (tax increment financing). Has the Cleveland Heights/University Heights School district signed off on this?

Where will the other millions come from to reach the estimated redevelopment cost of $69 million? The loan applications indicate a “construction loan” in the amount of $41,283,729 as a portion of the “debt financing.”

Why is the City of South Euclid paying for the demolition and environmental clean-up at a cost to the taxpayers of $1.8 million if the property is being “sold” to The Coral Company?

Why has the City repeatedly misrepresented the facts regarding these loans for $1.8 million? According to the Cuyahoga County Department of Development, the only “grant” money the City has, or will receive is $35,000 which was paid directly to Burgess and Niple for their services rendered for consulting.

The city is currently paying property taxes of $460,526.22 on the Cedar Center properties.

The above calculations do not include the astronomical cost of legal fees which have for the most part been paid to outside legal counsel while the "part time" City Law Director receives a very healthy sum of money.

Please click on the links below to view city records of legal spending:

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